Apex Footwear profit rises 14.6%, operating cash flow turns negative
Apex Footwear Limited, one of the country’s leading shoemakers, reported a 14.6 per cent increase in profit to Tk 15.55 crore in FY26, supported by higher revenue, while its net operating cash flow per share (NOCFPS) turned sharply negative.
Despite the rise in profit, the company recommended a lower dividend for FY26, proposing a 15 per cent cash dividend and a 15 per cent stock dividend, compared with a 25 per cent cash dividend and a 25 per cent stock dividend paid for FY25.
According to a disclosure issued on Sunday, Apex Footwear’s earnings per share (EPS) rose to Tk 7.91 in FY26 from Tk 6.90, restated, in FY25.
However, its net operating cash flow deteriorated significantly during the year. NOCFPS fell to negative Tk 96.97 in FY26 from positive Tk 45.19 in FY25, indicating that the company’s operating activities consumed cash during the period.
The company secretary Md. Omar Faruque told Daily Waadaa that the negative operating cash flow was mainly caused by significantly higher working-capital requirements.
“The negative operating cash flow is mainly due to significantly increased working capital requirements for making payments against material purchases, deferred C&F payments, an increase in payments for wages, salaries, and other overheads, higher income tax payments, and higher trade payable balances,” he said.
Apex Footwear, a listed company and a major player in Bangladesh’s footwear market, reported revenue of Tk 1,773 crore in FY25. Its revenue stood at Tk 1,559 crore in the first nine months of FY26, while full-year revenue for FY26 has yet to be disclosed in the filing.
Tk 500 crore refinancing plan
Meanwhile, the company’s board has decided to issue redeemable preference shares worth up to Tk 500 crore to refinance its existing loans.
The proposed financing is aimed at refinancing the company’s existing borrowings and reducing its long-term financing burden.
The decision, however, is subject to approval from the company’s shareholders and the Bangladesh Securities and Exchange Commission (BSEC).
The board has also decided to amend the company’s Memorandum and Articles of Association, subject to shareholders’ approval.
Stock dividend
The company said the 15 per cent stock dividend was recommended to utilise retained earnings as paid-up capital and improve the capital adequacy of the company.
The stock dividend will be issued from accumulated profit and not from capital reserve, revaluation reserve or unrealised gains, according to the disclosure.
Apex Footwear will hold its annual general meeting (AGM) on November 29 at 11:00am through a digital platform in accordance with BSEC directives. The record date has been set for October 15.